Advantages to retiring in Delaware (Wilmington, Milford: sales, real estate, apartment)

[loveautumn]

Can you tell me what the advantages to retiring in Delaware would be....quality of life, taxes, etc. for someone with an income of about $50k a year, plus working part time. I'd be renting an apartment. Is it do-able there?

[doctorjef]

Are you sure you would want only to rent? Residential property taxes are very low here, especially in Sussex County -- that's one advantage of retiring in DE. No sales tax is another. The state does have a personal income tax that is at about the median level relative to other states that have income taxes. The weather isn't terribly severe in the winter, if that's an issue, though I find the winters overly long and confining. Distances to drive are typically short, which means you don't spend much on petrol or car upkeep generally. There are a lot of retirement communities in the state, so retired people and senior citizens are an increasingly important voting constituency that have to be catered for by state government and public-private institutions in the state. Apart from those considerations, I think the advantages of living here largely depend on what you like to do, your own unique situation and what's important to you in terms of that. In terms of the income you quoted, you should be able to live modestly on that here.

[Bluzman]

doctorjef is correct about the property taxes being very low if you are NOT in an annexed protion of a community in Sussex County, and that is the key. We moved here 3 years ago to an unannexed protion of Milford and have a 3,000 sq ft home situated on 1 1/2 acres and pay under $1,000.00 a year in property taxes. The no sales tax claim is a bit deceptive, there is a sales tax on homes and high price luxury items over a certain value.
If you are from the New England area as we were the winters are like new Englands fall weather, I still go out in shorts basically year round, and I'm nearly 60. I had use my snow blower for the first time this winter because we got about 6" of snow which was gone 3 days later. There are tax breaks for homeowners over the age of 62 as well. Good luck in your search, we have several friends and family who have recently moved here as well from up north.
Blues

[doctorjef]

Regarding real estate taxes, it's worth noting that many suburbs in DE are unannexed - more than in other states IME. I live in a suburb of Wilmington that is unannexed and Wilmington hasn't annexed a community since shortly after the Civil War. Only one close-in, contiguous suburb is incorporated up here: Elsmere. I'm not sure if some Sussex incorporated towns have relatively high city taxes on property, but I doubt it puts them up to the property taxes in surrounding states. In some cases Sussex properties that list for the better part of a half million dollars are tax-appraised at a level that gives them an annual property tax bill of under a thousand dollars. Even here in New Castle County, where average property tax is the highest in the state, my property taxes are VERY modest. True there is a real estate property transfer tax, split between seller and buyer, but the overall closing costs aren't notably high. By the same token, there's a title transfer tax on vehicles (not technically a sales tax, actually), but it's not bad. In everyday life, taxes attached to purchases are basically nonexistant.

[Bluzman]

Our same home if we were located in an annexed portion of Milford would have a property tax of approximately $3,500.+ just for the right to vote in city elections and have local police protection. As far as annexation if the developers were to build overnight all the homes that are currently permitted to be built, Milford would triple the number of residents we currently have.

[tazzt]

The above responses from residents paint a fairly good picture. The key is the lifestyle you are now living and enjoying and how it compares to DE. We moved from So. MD to So. DE for the weather, close to beaches, close to military base, friendly people, country/small town living without a lot of major city hassels. I'm from rural Massachusetts (the Berkshires) and this is heaven for my wife (from Holland) and I. Go to Google and type in Total Tax Burden by State and then compare where you are now with DC, MD, VA, PA, NJ and then DE. That matrix will give you an idea of the savings if living a slower less hectic pace is your metier. People here value friendships, loyalty, all-American values. Fewer phonies and less keeping up with the Joneses in my opinion.

[doctorjef]

What, pray tell, are "all American values"? To me this is code for a lack of diversity and everyone having the same basic worldview. I wouldn't find that a commendable aspect to DE or anywhere else. Fortunately, there is some diversity in lower DE/Sussex County, with Rehoboth Beach and Milton perhaps being exemplary of that amongst other places. Even in Lewes I saw an anti-war demonstration last year. So if by "all American values" you mean a culturally homogenous society of people who all adhere to the same politics and basic lifestyle, fortunately that is an inaccurate representation of the First State.

[loveautumn]

I'm basically looking for a quiet, safe neighborhood, I love lakes/ponds and since Delaware is small, seems I could drive to the ocean/bay as a day trip once in a while too. It appeals to me because I love New England and Virginia because of the architecture, four seasons, etc. but NE winters might be too harsh for me anymore. I like snow but not extreme cold. I enjoy having a larger metro area close by, where I could get all the benefits of museums, etc. once in a while. Delaware just kind of seems to fit as not too far north and not too far south...

[doctorjef]

I think DE would fit your criteria then. The only thing I would warn is that if you are coming from somewhere much farther south with much less winter, you could still find the winters too cold and confining. I'm afraid that's been my experience, as the last two places I lived were the south of England and Austin, TX. Although I grew up in northern VA and DC, winter here has turned out to be longer and more consistently cold than I remembered it to be. I also spent time as an adult living in western Colorado (Grand Junction) and in north Texas, but I don't think either of those places had cold weather that was as prolonged as my last two years in northern DE. So do be careful about that. Otherwise DE might be a good fit for you, especially if you don't greatly care for cities.

[newpoppop]

Hello. Newbie poster as well as newbie to Delaware (Middletown, in two short weeks... I hate moving).

Besides the real estate tax advantages, it is my understanding that Delaware is income tax "friendly" to retirees. Is this correct?